Sierra Leone: After initial suspension, Sierra Leone restarts 4th licensing round

Sierra Leone has put on a brave face and announced a rehashed package for bidders interested in taking part in its fourth hydrocarbons licensing round that was suddenly put on the ice in September 2018 after a new administration took charge of the West African country following successful Presidential elections.

The country says it is now ready to restart last year’s suspended fourth licensing round targeting offshore prospects after what the government says was broad consultation process involving domestic and international petroleum industry players.

It has this week come out to reaffirm the soundness of its new regulatory and fiscal framework on which the success or failure of the new licensing round will be hinged on.

Getech Group, a partner with government hydrocarbons agency Petroleum Directorate of Sierra Leone (PDSL) - which coordinates the award of petroleum licenses, negotiates the terms of all hydrocarbon permits, monitors, regulates and facilitates upstream oil activities on behalf of the government – publicized the official announcement of the stalled licensing round suspended in September 2018 and follows on the footsteps of similar undertakings in 2003, 2004 and 2012.

Last year’s suspension of the oil block’s auction was ostensibly to allow

for wider consultations on how best to re-structure the bidding to ensure heightened interest of international explorers and independents.

“Following the conclusion of a sixmonth industry consultation that was designed to collate international industry feedback and ensure the success of this round, companies are now invited to re-engage with the Fourth Licensing Round,” Getech said in a statement.

The previous three bids attracted mixed response with four blocks awarded in the first round of 2003 while only one block was awarded in 2004 followed by one more in 2006 that was allocated through direct negotiation in 2006.

However, during third round of 2012, eight blocks were awarded and a more robust response is expected this time round especially after PDSL said it has “collated international industry feedback to ensure the success of the bidding round.”

Sierra Leone is restarting the fourth licensing round at a time when PDSL has in stock four undeveloped offshore discoveries made between 2009 and 2013.

They include Venus-b1, Mercury-1, Jupiter-1 discovered by Anadarko in Block SL-07 and Savanaah-1 by Lukoil in Block SL-05/11 all of them in Sierra Leone waters that PDSL says “contain proven petroleum systems.”